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Showing posts with label HomePlus. Show all posts
Showing posts with label HomePlus. Show all posts

Thursday, December 4, 2025

Business as usual

As usual in Seoul, real estate and urbanism are never far from the headlines, but let's skip topical stuff and limit to mere footnotes recent controversies (this Seoul city erection in front of Jongmyo*? that measure from the national government**?).

Let's talk shop. 

You see in with those 'for rent' signs, you measure it with the speed at which new stores tend to close: small businesses are really feeling the pinch***. Part of it is conjunctural - the Korean economy as a whole is struggling, and demographics don't bode well for the future. Part of it is structural - more than COVID, the labor reforms that preceded changed fundamentally the street experience for Seoulites: used to a city that never slept, they're now coping with last orders at 9 pm or restaurants closing for dinner altogether.

And of course, more and more Koreans are now ordering everything online. Not just these GenZ who don't cook and limit their IRL shopping experiences to retailtainment or browsing Seongsu-dong's pop-up streets like their parents did with fashion magazines. Yes, Seoul's last mile equation is not sustainable (and as much as I appreciate last minute, early morning, ultra fresh deliveries, I'm glad their social costs are being investigated), but the trend is global, and all cities have to adapt.

It's harder to adapt when the urban hardware is obsolete. 

You're less inclined to contribute to your neighborhood's vitality when 'proximity' shops and services are not so close and in Seoul, apartment blocks tend to cut citizens from their city.

In the old gen 'apateu' blocks, a building devoted to businesses was generally included near the main entrance, sometimes in secondary entrances. This 'open ring' was seldom complete, but everybody walked or drove by these shops every day, particularly since few parking spaces were underground. These businesses belonged to the community.


Some housing complexes are more blended with their surroundings, their edges consisting of mixed use buildings. Even if there's less often greenery to compensate****, pedestrians enjoy (functionally speaking) a better street experience from the outside (urban continuity, diversity...). On the other hand, the inside may seem more exclusive. 
By nature mixed use buildings, officetels usually include shops and services. But when those take too big a share residents can easily feel overwhelmed. Many exclusive, high rise projects with only a couple of buildings have a mall on the lower floors, a 'vertical buffer' that's de facto a separate building with a devoted parking to preserve the residents' quality of life. But then, since it takes anyway 10 mn to leave your luxurious apartment and reach an entrance that's far from everything, many prefer to take their car and shop elsewhere, and this vertical city can turn into a tale of two cities. 

Another tricky model is what I call the 'captive cluster'; very common in greenfield 'new towns' across the capital region and around major cities. In the middle (in best cases) or at the edge (too often) of a group of apateu blocks that can involve different developer brands, urban planners insert a low rise block of mixed use buildings with all the shops and services on the ground floor. Some can be relatively well done, making the best of what's left of a natural landscape (e.g. waterways), and you can almost enjoy a village atmosphere that changes from the dull tombstone collections around, particularly since each lot owner build their own. But too often these clusters fail because there are not enough candidates to open shop*****, or because they've been poorly designed. 

Instead of an open grid, some of these clusters (particularly recent ones) propose only one or two car entrances and force visitors into a full round along a conveyor belt before exiting. On purpose, like a journey in an Ikea store makes you browse the whole catalogue. Except people move by car because these new towns are humongous, and the streets and parking spaces are seldom as entertaining, well drawn, and planned. Sometimes, these clusters are even split into two independent halves that don't communicate directly. And this 'captiveness' is actually a sales argument to recruit new businesses... Needless to say, not very sustainable.

 

If Seoul's 'MOA Town' concept signaled an evolution from massive tabula rasa to partial redevelopment, allowing more diverse cityscapes and ecosystems (see "From Human Town to Gather Town"), the market remains dominated by big projects, New Towns that obliterate real cities. 

It's not its big blocks but its remaining villages that make Seoul special. If we neuter them, if we destroy diversity, city centers will die. If we do nothing they'll die out, even if a few local markets miraculously manage to thrive and warm up whole neighborhoods.

I've been advocating pragmatic approaches to revive decaying city centers. They all involve bringing back inhabitants, even if that means designing exceptions to the rules, for example by allowing mixed uses in low rise business areas, or small scale revamps that involve shared facilities or obligations (e.g. elevators, parking spaces). Some may be implemented, stay tuned.


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* ICYMI Seoul city decided to replace Sewoon Sangga with a park between Jongmyo and Namsan, but also to 'compensate' by allowing much taller buildings in the vicinity, which of course doesn't fit preservation or UNESCO Heritage guidelines:

 

Adieu #SewoonSangga. #Seoul to replace #KimSwoogeun landmark with a park between #Jongmyo & #Namsan. But bdg heights raised to 71.9m on #Jongro (+16.9) & 141.9m on #Cheonggyecheon (+43.2). Will #UNESCO accept? #세운상가 #urbanism (20251104 SeoulVillage on X)

** ICYMI the government extended Seoul's speculative zone from the 3 usual districts (Gangnam, Songpa, Seocho) to the whole city, which resulted in a freeze in transactions (except in the 3 districts that became relatively more attractive), and a hike in rental costs. Like previous reforms, the aim seems to be crushing further the middle class and making first purchases impossible (the guy in charge of the reforms was driven by his idea that first time homeowners tended to vote more conservative)....

*** Big players are not spared, but if HomePlus will yet again change hands (Carrefour, HomeEver, Tesco... WhatEver?), its financial trouble have a lot to do with MBK Partners' disastrous management.

**** Wangsimni New Town's Majang-ro 19-gil sets a better example with dense trees on both sides,  

***** yes, these new towns also include new schools, so it's not just dwellings that are in oversupply nationwide
 

Wednesday, August 10, 2016

What's cooking, Korea?

In a recent focus on the decline of home made banchan in Korea*, Korea Joongang Daily mentioned busy schedules, and the boom in HMR (Home Made Replacement) products, new online services (e.g. The Banchan, about to be purchased by food major Dongwon Group), or restaurants proposing home food (jipbap).
Korea's tradition of homemade banchan is vaning. Many new products and services indeed (20160810 - twitter.com/theseoulvillage/status/763151485890809856)
To me, even more than the arrival of hypermarkets, the emergence of SSM or Super-SuperMarket  (dominated by the same oligopoly: Lotte Super, HomePlus Express, E-mart everyday) accelerated changes in HMR variety and packaging, particularly when it comes to targeting specific demographics, like single households. And as all the major producers seeked for differenciation, the HMR offer evolved from classic dishes to more creative recipes. 

Yet that creativity has yet to emerge for banchan in the Korean distribution, even online.
If theBanchan is more a food market before than a banchan specialist, it does offer a wide range of banchan, but without revisiting the classics. Furthermore, big food groups taking over this kind of potentially disruptive players doesn't bode well for diversity in the future.
I'm less worried about fewer Koreans preparing their own banchan - a logical trend - than about Korean palates being exposed to fewer kinds of banchan. And over the past few years, the decline in diversity for side dishes offered in Korea's mom and pop restaurants has been very spectacular. If it's linked to their struggle to stay in business in these times of crisis, old customer habits don't help: many remain reluctant to pay a fair price for Korean food (yet ready to pay way too much for mediocre Foreign food). 

The good news is that Korea, as usual experiencing societal changes at bballi bballi speed, seems to be rediscovering cooking way sooner than other nations. And not just young girls asking family recipes from their halmoni: people of all ages opening creative eateries, granddads venturing into the kitchen, food becoming a key driver in the startup ecosystem...

So be not afraid, Korea, and keep surprising us!

Seoul Village 2016
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* "Rise of pre-made banchan may herald end of an era: Busy schedules deal blow to culture of Korea’s quintessential side dishes" (KJD 20160810)

Monday, April 15, 2013

Smart Cities - Seoul: a case study (ITU)

Seoul website posted today* about a UN report on Smart City Seoul, actually a case study published last February by the ITU (International Telecommunication Union), the UN agency in charge of ICT standardization, and co-written by Jong-Sung Hwang (Assistant Mayor for IT, Seoul Metropolitan Government) and Young Han Choe (ITU Telecommunication Standardization Bureau).




In the perspective of Seoul Smart City 2015, that's an interesting overview and update at all levels: policies, organizations, infrastructures, plaftorms, applications, user interfaces and usages... even private initiatives, like the virtual store that made a splash a couple of years ago (see "HomePlus virtual stores in Seoul subway : from your smartphone to Cannes festival screens"). Random examples:

u-Seoul network
u-Seoul Net - The backbone has been extended to 192 km to enable further integration and convergence across the capital. At the other end of the network, Seoul can leverage a world class broadband coverage (4G, wifi, FTTH, even in subways), but it keeps investing in free wifi hotspots (eg in public areas and parks), and even in device donations to democratize usages.


Smart Work Centers: 10 "u-Work Center" allow civil servants to work closer to home, reduce stress, and carbon footprints... without going all the way to working from home.


Seoul's yeyak reservation for public services
Yeyak, the one-stop, integrated reservation system for all public services: yeyak.seoul.go.kr/english/main.web. NB: databases not yet operational**. Seoulites already enjoy great services for free (eg 120 Dasan Center, Seoul Global Center, real time info on traffic and public transports...), and a new mobile app specially designed for foreigners will be launched next month. A leader in e-government, Seoul plans to disclose 100 databases to the public by the end of 2013 (150 by the end of next year).
Yes, there's the security issue any CCTV-laden smart city faces, but this "Big Brother" is rather here to help.

Overall, an interesting read, not too technical for an ITU paper (I remember eating a few of those back in the nineties, when I worked on 3G and beyond). Not all dimensions are covered, and I think it could have been interesting to add something about broadband penetration and usages in the capital. The number of LTE subscribers recently passed the 20 M mark in Korea, where the economy of the "last mile" is very competitive for operators compared to their European counterparts.

... reminds me I've got to finish my latest update on the "ubiquitous" but not yet "all over the place" cities of Songdo and the DMC.

Seoul Village 2013
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* "'스마트 도시 서울', UN이 특집 보고서로 다뤄"
** Seoul's new 3D spatial information system (3dgis.seoul.go.kr) also needs some debugging

Thursday, March 22, 2012

Every other Sunday

From April on, all hypermarkets and big stores in Korea will be forced to close every second and fourth Sunday of the month. The measure aims at protecting smaller players, and diminishing the market share of chaebols.

Of course, HomePlus-Samsung-Tesco, Lotte, eMart-Shinsegae, won't not lose it all: expect even more crowded Saturdays, and the acceleration of substitution by online shopping. And naturally, the clock keeps ticking for the bulk of traditional markets.

Yet I see a potential boost for diversity in leisure and cultural activities.

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Monday, July 19, 2010

Online sales become the first distribution channel in Korea - or is door-to-door back ?

When I first came to Korea 20 years ago, Department Stores were becoming the main distribution channel for many consumer goods, taking over traditional door-to-door sales.

Convenience stores (FamilyMart, LG25 - now GS25 -, BuyTheWay, 7Eleven...) were also gaining ground. Then came the hypermarkets (eMart, Carrefour at one moment, Samsung / Tesco HomePlus, Lotte Mart...), and the SSMs / SuperSuperMarkets (Lotte mySuper, HomePlus Express, eMart Everyday...).

One by one, small groceries / mom & pop stores closed, and traditional markets plummeted, killed by discount shopping (or supposedly "discount" shopping : a recent survey pointed out that for many food items, traditional markets are actually cheaper). Survivors could count on a system that protected both food majors and small distributors : product packaging including the price tag regardless of the sales channel guaranteed the same price for such basic items as instant noodles or ice creams. But this system is about to be abandoned and anyway, it didn't mean much anymore : big discounters sell their own brands of instant noodles, and my local SSM offers a year-round 50% discount on all ice creams.

Even as competition raged between discount shops, many opening 24/7/365, Department Stores (Lotte DS, Shinsegae DS, Hyundai DS, Galleria DS...), sometimes growing into ambitious complexes (ie Shinsegae Centum City in Busan) remained ahead for many consumer goods and fashion.

Until now : online sales have just become Korea's first distribution channel.

This doesn't come as a surprise for anyone living in "ubiquitous" Korea : beyond pure players (ie Auction), even brick and mortar leaders are pushing ecommerce very hard, prefering cannibalization to the loss of a customer.

Somehow, we're back to square one and door-to-door sales. The first door is your mobile, PC or TV screen, but everything is done to deliver it wherever you live (home deliveries keep booming), wherever you work (Seoul would collapse without cheap express deliveries), and even wherever you go (ie location based services and mobile couponing).

Like for ADSL or FTTH, Korea's economy of access is unbeatable. Because of urban density, because major players are ready to offer what comes as a premium anywhere else, and furthermore because in many cases for smaller fish, the last mile is provided by people working under the legal hourly wage, ready to make a buck even if it doesn't make any sense if you simply take into account transportation costs. When you see a truck carrying about five hundred eggs on a highway, you know something is wrong. And when you order a book online, the delivery person is rarely twice the same plain-clothes individual.

I guess that's one of the reasons why Amazon is not in Korea. The retailer tried to do some business via Samsung / SIMS more than ten years ago but failed. So Amazon ships from other countries to international customers while Kim & Chang law firm securely protects Amazon.co.kr URL.

Of course, Amazon would face pure players in cultural goods, such as Aladdin (now Aladin.co.kr), or Kyobo Book Center (very ambitious in the ebook ecosystem), but I don't think it's about competition : players differenciating themselves on logistic platforms tend to struggle here. Carrefour left the country in spite of commercial success for regulatory reasons : it couldn't operate with its usual purchasing power model. I think the logistics equation could be very tricky for Amazon.

eBay is faring much better in Korea (as Auction.co.kr) - it even wolfed down G-market, snatching it away from Inter Park... but eBay is more into auctions and C2C than into retailing and B2C. And when it advertised massively on internet shopping, big retailers pushed the pedal to the metal.

But the biggest revolution for e-commerce in Korea this year is the end of Microsoft Explorer's de facto monopoly since July 1st : since 1999, all online shopping and banking services had to use ActiveX systems, but the Financial Services Commission put an end to it following the recent boom in smartphones.


Seoul Village 2010